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Skye Bioscience (SKYE)
NASDAQ:SKYE
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Skye Bioscience
(NASDAQ:SKYE)
Rating:38Underperform
Price Target:―
Positive Factors
Clinical Data Presentation
Skye will present results supporting that CB1 inhibition is sufficient to promote weight loss using clinical data at the European Congress on Obesity.
Clinical Study Progress
The Phase IIa CBeyond study will continue as the fourth Data Safety Monitoring Committee convened without raising any safety concerns.
Financial Stability
The company ended 2024 with $68.4 million in cash, which is expected to fund operations through at least the first quarter of 2027.
Negative Factors
Financial Performance
Skye reported a net loss of $9.7 million, which was in line with estimates but still represents a financial loss.
Trial Data Release
The interim data from the Phase IIa CBeyond trial will no longer be released as initially planned.
Skye Bioscience (SKYE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$103.19M
Dividend YieldN/A
Average Volume (3M)343.58K
Price to Earnings (P/E)―
Beta (1Y)2.21
Revenue GrowthN/A
EPS Growth72.65%
CountryUS
Employees16
SectorHealthcare
Sector Strength48
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.44
Shares Outstanding30,988,420
10 Day Avg. Volume304,884
30 Day Avg. Volume343,584
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.14
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-194.07
Enterprise Value/Ebitda-2.83
Forecast
1Y Price Target
$15.50Price Target Upside336.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Skye Bioscience Business Overview & Revenue Model
Company DescriptionSkye Bioscience, Inc., a biopharmaceutical company, discovers, develops, and commercializes cannabinoid-based molecules for the treatment of infectious diseases. The company's lead product candidate is SBI-100, which is in Phase I trials for the treatment of glaucoma and ocular hypertension. It is also developing SBI-200 that is in preclinical trials to treat and manage various eye diseases, including uveitis, dry eye syndrome, macular degeneration and diabetic retinopathy. The company was formerly known as Emerald Bioscience, Inc. and changed its name to Skye Bioscience, Inc. in January 2021. Skye Bioscience, Inc. was founded in 2012 and is headquartered in San Diego, California.
How the Company Makes MoneySkye Bioscience generates revenue through the development and eventual commercialization of its pharmaceutical products, which are primarily aimed at treating ocular diseases. The company's revenue model is built on the successful advancement of its drug candidates through clinical trials, regulatory approvals, and subsequent market entry. Key revenue streams include potential milestone payments and royalties from partnerships with larger pharmaceutical companies, as well as direct sales of approved products. Strategic collaborations and licensing agreements also play a crucial role in funding research and development activities, which are critical to advancing the company's drug pipeline. However, as of the current data, Skye Bioscience may still be in the pre-revenue stage, focusing on research and development efforts to bring its drug candidates to market.
Skye Bioscience Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: 0.00%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view of Skye Bioscience's progress. While the company showcased significant advancements in its clinical trials and financial stability, it also faced challenges with increased R&D expenses and a substantial net loss. The strategic developments and promising preclinical data are positive highlights, but the enrollment challenges in the extension study indicate areas needing attention.Q2-2025 Updates
Positive Updates
Phase IIa CBeyond Study Progress
The Phase IIa CBeyond study for nimacimab is advancing as planned, on budget, and ahead of schedule. Enrollment was completed in February, and the 26-week visit for the last patient is projected to occur very shortly. The Data Safety Monitoring Committee has reviewed the study four times with no recommendations for changes.
Promising Preclinical Data
The combination of nimacimab and a suboptimal tirzepatide dose demonstrated 44% vehicle-adjusted weight loss in a preclinical study. Nimacimab alone showed 21.5% weight loss, and it reduced rebound weight gain when used as a maintenance therapy post-incretin treatment.
Financial Stability
Skye ended the second quarter with $48.6 million in cash and cash equivalents, expecting to fund operations and key clinical milestones through at least Q1 2027. Research and development expenses increased, primarily due to contract manufacturing and clinical trial costs.
Strategic Developments and Hiring
Skye expanded its team to 20 employees, with key hires in regulatory affairs, quality, clinical operations, and CMC. The deliberate scaling aims to minimize downtime between clinical trials and support nimacimab's advancing development activities.
Negative Updates
Increased R&D Expenses
Research and development expenses for Q2 2025 were $14.3 million compared to $4.1 million in Q2 2024, primarily due to contract manufacturing and clinical trial costs.
Net Loss Increase
Skye reported a net loss of $17.6 million for the second quarter of 2025, up from $7.9 million in the same period in 2024.
Extension Study Enrollment Challenges
Approximately 50% of patients from the original study are eligible for the extension study due to the belated design of the extension and natural early terminations in the original study.
Company Guidance
During Skye Bioscience's second quarter 2025 financial results and business update call, key guidance metrics included the advancement of the Phase IIa CBeyond program, which is progressing ahead of schedule with enrollment completed by February and the 26-week visit for the last patient anticipated soon. Approximately 50% of the original study's patients are eligible for the extension study, with optimism for high participation. The Data Safety Monitoring Committee has reviewed the study four times without recommending changes, underscoring effective management. Skye Bioscience anticipates reporting top-line results by late Q3 or early Q4. Financially, the company ended Q2 with $48.6 million in cash and equivalents, projecting their capital to fund operations through Q1 2027. Research and development expenses rose to $14.3 million due to contract manufacturing and clinical trial costs, while general and administrative expenses decreased slightly to $3.9 million. The company reported a net loss of $17.6 million. The upcoming months are critical, with several milestones such as a KOL event and top-line data release expected to shape the future development of nimacimab.Skye Bioscience Financial Statement Overview
Summary
Skye Bioscience faces significant financial challenges typical of a biotech firm in its early stages, with zero revenue and consistent losses. Recent financing efforts have improved cash reserves, but the company's long-term success relies on revenue generation and cost management.Income Statement
Skye Bioscience exhibits significant challenges in its income statement, primarily due to consistently zero revenue and substantial net losses over recent years. The lack of revenue growth and negative profit margins highlight the financial stresses typical in the biotechnology industry, especially for companies in the developmental stage.10
Very Negative
Balance Sheet
The balance sheet shows a positive trend with significant growth in stockholders' equity in the latest year, driven by substantial financing activities. However, the company still faces high liabilities relative to its assets, as evidenced by the historical negative equity until the most recent year. The low debt level and increasing cash position are positives, providing some financial stability.30
Negative
Cash Flow
Cash flow performance is weak, with consistently negative operating and free cash flows. However, the company has managed to secure substantial financing, which has improved its cash position. The free cash flow remains negative, indicating ongoing operational challenges.20
Very Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | -605.74K | -298.64K | -124.25K | -115.00K | -34.13K | -1.87K |
| EBITDA | -41.52M | -25.51M | -36.61M | -18.57M | -7.72M | -5.85M |
| Net Income | -42.37M | -26.57M | -37.65M | -19.48M | -8.52M | -6.56M |
Balance Sheet | ||||||
| Total Assets | 52.16M | 72.76M | 11.94M | 9.11M | 9.86M | 2.67M |
| Cash, Cash Equivalents and Short-Term Investments | 48.59M | 68.42M | 1.26M | 1.24M | 8.98M | 2.47M |
| Total Debt | 367.54K | 455.59K | 4.62M | 1.98M | 2.14M | 1.50M |
| Total Liabilities | 8.48M | 4.61M | 14.07M | 12.12M | 3.99M | 2.22M |
| Stockholders Equity | 43.68M | 68.15M | -2.13M | -3.01M | 5.86M | 450.79K |
Cash Flow | ||||||
| Free Cash Flow | -34.94M | -26.84M | -13.96M | -12.77M | -6.57M | -6.06M |
| Operating Cash Flow | -33.37M | -25.24M | -13.95M | -12.74M | -6.47M | -6.05M |
| Investing Cash Flow | -12.82B | -245.62K | 6.60M | 5.21M | -90.87K | -7.23K |
| Financing Cash Flow | 23.78K | 83.56M | 16.44M | -208.79K | 13.08M | 6.70M |
Skye Bioscience Technical Analysis
Negative
3.55
Price Trends
3.55
Negative
2.71
Positive
2.98
Positive
Market Momentum
-0.06
Positive
44.67
Neutral
62.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKYE, the sentiment is Negative. The current price of 3.55 is above the 20-day moving average (MA) of 3.50, below the 50-day MA of 3.55, and above the 200-day MA of 2.98, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 44.67 is Neutral, neither overbought nor oversold. The STOCH value of 62.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKYE.
Skye Bioscience Risk Analysis
Skye Bioscience disclosed 51 risk factors in its most recent earnings report. Skye Bioscience reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Skye Bioscience Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
56 Neutral | $86.46M | ― | -232.51% | ― | 138.11% | 76.60% | |
56 Neutral | $76.98M | ― | -154.88% | ― | ― | 20.25% | |
51 Neutral | $7.82B | -0.16 | -39.78% | 2.19% | 21.38% | -1.56% | |
45 Neutral | $36.13M | ― | -505.14% | ― | 16.14% | 31.01% | |
42 Neutral | $36.67M | ― | -90.56% | ― | ― | 68.13% | |
41 Neutral | $51.47M | ― | -130.59% | ― | -100.00% | 13.14% | |
38 Underperform | $103.19M | ― | -72.75% | ― | ― | 72.65% |
* Healthcare Sector Average
Performance Comparison
SKYE
Skye Bioscience
3.29
-2.66
-44.71%
ATHE
Alterity Therapeutics
5.02
3.72
286.15%
ATNM
Actinium Pharmaceuticals
1.74
-0.27
-13.43%
MRSN
Mersana Therapeutics
7.75
-31.25
-80.13%
CELU
Celularity
3.79
0.63
19.94%
OKUR
OnKure Therapeutics
2.83
-12.67
-81.74%
Skye Bioscience Corporate Events
Business Operations and Strategy
Skye Bioscience Updates Inducement Equity Incentive Plan
Neutral
Feb 26, 2025
On February 24, 2025, Skye Bioscience, Inc.’s Board of Directors approved an Amended and Restated 2024 Inducement Equity Incentive Plan. This plan provides the Administrator with broader authority over equity awards in the event of a Change in Control, allowing for actions such as cancellation, substitution, or replacement with cash incentives, while maintaining most terms from the previous plan.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.